Kinder Morgan Energy Partners, L.P. says that El Paso Natural Gas Company (EPNG) has entered into a 21-year firm transportation agreement with Mexico's Comisión Federal de Electricidad (CFE) to initially provide approximately 163,000 dekatherms per day (Dth/d) of firm transportation capacity by October 2014, ramping up to 200,000 Dth/d by October 2017 and 550,000 Dth/d by October 2020. The phased capacity increases will be accomplished using existing and expansion capacity on the EPNG system. As previously announced, capital expenditures are estimated at approximately $529 million.
Engineering and procurement activities have begun on the first phase of work, which involves system improvements to deliver volumes to the Sierrita Pipeline near Tucson by October 2014. The second phase will result in incremental deliveries of natural gas to the Sierrita Pipeline and to California, and is expected to be completed by October 2020. The Sierrita Pipeline is expected to be in service in September of this year.